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Buy or Rent

Buy or Rent

This article is about the business of buying, selling, and renting real property.

The purpose of this article is to help you for renting or buying property. The indicators in here show whether you should continue to rent and save for a deposit, or when the time is right to buy.

However, This report aimed at renters who want to buy, and suggests when conditions are appropriate to make the move from renting to owning.

Looking for the right property

There are many ways of looking for a property. This includes:

1. Checking out the options available online in property portals such as Velocityhousing.com.

2. Check out print ads that appear in newspapers and magazines.

3. Use brokers in the neighbourhood who will be able to advise you on various options.

4. Choose a developer and see what he has to offer.

The first steps what are the things to actually look for a house?

Budget, location, type of property, objective of buying or renting and choice of property are the determining factors for purchase & rent of property from an end user’s perspective. Real estate values are governed by demand and supply. This may vary on a project to project basis. The projects which see good demand normally do not see a price correction.

What makes more sense — Rent or Buy?

There is a simple way of judging whether to buy a property or whether you should lease one. If you find a house that you would like to stay in, that is close to your workplace or easily accessible from there, then buy it. But remember that the Equated Monthly Installment (EMI) on your property should not be over 40 per cent of your monthly salary. That way you would be comfortable paying it back. You need 10-15 per cent of the cost as your personal contribution to the purchase, as banks do not lend 100 per cent. If you are paying a monthly rent that would constitute over 75 per cent of your EMI please think in terms of buying. (Check out the MB Buy Vs Sell Calculator which can serve as a broad indicator on whether you should lease or buy).

Rent - Compensation paid by a tenant (or lessee) to the property owner (or lessor) for use or occupancy of a property. The amount to be paid on a lease agreement. This amount is usually based on a per-month basis.

A property from which the owner receives payment from the occupant(s), known as tenants, in return for occupying or using the property. Rental properties may be either residential or commercial. The owner of rental property may be allowed to take certain tax deductions such as mortgage interest and depreciation.

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